United Utilities Group plc (LON:UU) has announced its preliminary, unaudited full year results for the year to 31 March 2026, alongside a strategic update available.
Louise Beardmore, United Utilities Chief Executive Officer, said:
“Our BIG North West upgrade is now well underway, marking the most significant transformation of our region’s water and wastewater infrastructure in more than a century. One year into our five‑year AMP8 programme, we are delivering at pace and at scale – strengthening the resilience and quality of our services, protecting and enhancing the environment, and supporting sustainable economic growth and thousands of new jobs across the North West.
“We already have more than 1,000 projects live across the region, supported by over 100 supply chain partners, and we have delivered our year one regulatory commitments on time. Operationally, we are making real progress on the issues that matter most, including significant reductions in storm overflow spills and sewer flooding, alongside strong customer service performance.
“Building on this platform, today we are announcing a plan for additional investment in our region1 – including proposals for new water and wastewater infrastructure critical to the development of homes, data centres and clean energy. We expect it could create a further 4,000 jobs across our supply chain, on top of the 30,000 supported by our existing AMP8 programme. This focused, disciplined and well-funded plan will help us accelerate delivery of the transformation in infrastructure and services that the North West expects and deserves.”
Key financials – year ended 31 March
| Reported | Underlying2,3,4 | ||||||
| £m | 2026 | 2025 | % change | 2026 | 2025 | % change | |
| Revenue | 2,616.3 | 2,145.2 | +22.0% | 2,576.4 | 2,145.2 | +20.1% | |
| EBITDA | 1,599.9 | 1,096.4 | +45.9% | 1,560.0 | 1,250.6 | +24.7% | |
| Operating profit | 1,099.4 | 631.5 | +74.1% | 1,059.5 | 785.7 | +34.8% | |
| Profit before tax | 779.0 | 355.0 | +119.4% | 738.0 | 513.6 | +43.7% | |
| Profit after tax | 586.8 | 264.7 | +121.7% | 730.0 | 513.3 | +42.2% | |
| EPS (pence) | 86.1 | 38.8 | +121.7% | 107.1 | 75.3 | +42.2% | |
| 2026 | 2025 | % change | |
| DPS (pence) | 53.66 | 51.85 | +3.5% |
| Net regulatory capex (£m) | 1,525.1 | 1082.7 | +40.9% |
| RCV5 (£m) | 16,527 | 15,367 | +7.5% |
| Net debt (£m) | 9,943 | 9,346 | +6.4% |
| RCV gearing6 (%) | 60% | 60% | 0% |
| Regulatory return7 (%) | 13.0% | 4.4% | +8.6% |
Operational highlights
| ● | Great start to the first year of the AMP, our supply chain is mobilised and delivering efficiently at scale, with over 1,000 live projects and year one regulatory commitments met |
| ● | Driving down spills, achieving a 23% reduction in the number of spills and a 27% reduction in duration since the prior year |
| ● | Significant reduction in sewer flooding, with 42% fewer internal flooding incidents and 25% fewer external sewer flooding cases year-on-year |
| ● | Zero category 1 pollutions, the most serious form of pollution |
| ● | Year-on-year improvement, with over 80% of our key performance metrics improved since 2024/25 |
| ● | Improving customer service, achieving 4.5 out of 5 and Excellent in our Trustpilot score, and above the median on all regulatory customer service measures |
| ● | Guiding to ODI reward in AMP8, with FY26 performance in line with management expectations at ~£35 million net penalty |
| ● | Committed and engaged colleagues, with levels of employee engagement at 90% significantly higher than the UK high performance average, and a rating of 4.6 out of 5 on Glassdoor as an employer in the region |
Financial highlights
| ● | Underlying operating profit of £1,060m, +35% on the prior year, driven by higher allowed revenues, partially offset by higher underlying operating costs |
| ● | Underlying EPS of 107.1p, up from 75.3p, and slightly ahead of guidance, reflecting a £274m increase to underlying operating profit, and higher net finance expense |
| ● | Financially resilient, with gearing at 60% in the middle of our 55-65% range, supporting solid credit ratings with Moody’s, Fitch and S&P |
| ● | Capital investment of £1,525m, with asset base growth of 7.5% to £16.5bn |
| ● | Regulatory return of 13.0%, ahead of guidance reflecting profiling of financing outperformance being weighted towards the start of the AMP |
| ● | Liquidity extending to the second half of FY28, supported by additional £1.5 billion of debt capital |
| ● | Recommended final dividend of 35.78p, in line with policy |
Upgraded financial framework reflecting today’s announcement
| ● | Targeting regulatory returns of 10-11% in AMP8, an increase of 100bps outperformance compared with prior guidance |
| ● | Capital investment increasing from c.£9 billion to c.£11.5 billion in AMP8 |
| ● | Asset base compound annual growth rate of around 10%8, up from around 7% previously |
| ● | Maintain dividend growth in line with CPIH9 |
| ● | Maintain gearing within target range of 55-65%, supported by a c.£800 million equity raise |
Preliminary full year results presentation and strategic update webcast – Thursday 30 April 2026
We will host a presentation and Q&A session with management at 8:00am(BST), which can be accessed using the details provided below. A replay will be available on the company website.
https://teams.microsoft.com/meet/360160455663116?p=tcTOMJf34cDlau2b2r
Meeting ID:360 160 455 663 116, Passcode: tv7it6Wu
Notes
1 See separate strategic update announcement
2 Underlying measures are reconciled to reported measures per the items outlined later in this document
3 Prior year comparatives have been re-presented with unaudited pro forma adjustments to reflect the estimated impact of changes in accounting approach in 2025/26 had they been applied in the prior year. In particular, the change in estimation technique for the measurement of inflation-linked debt is estimated to have had a positive impact on net finance expense of £23 million if applied in 2024/25, and that the adoption of a more granular approach to the capitalisation of IRE is estimated to have had a positive impact on operating profit of £152 million if applied in 2024/25.
4 Underlying EPS for 2026 includes positive 3p impact of change in estimation technique for the measurement of inflation-linked debt introduced in 2025/26 and positive 37p impact of higher capitalisation of IRE.
5 United Utilities Water Limited’s adjusted RCV (adjusted for actual spend, timing differences and including expected value of AMP8 ex-post adjustment mechanisms).
6 RCV gearing calculated as group net debt including loan receivable from joint venture/United Utilities Water Limited’s adjusted RCV (adjusted for actual spend, timing differences and including expected value of AMP8 ex-post adjustment mechanisms).
7Regulatory return is the return on regulatory equity comprising the base return, outperformance and inflation as per Table 1F of the Ofwat Annual Performance Report.
8 From the 2024/25 baseline of £15,367 million assuming CPIH inflation of c.3.0% on average in AMP8
9 Target dividend growth in line with CPIH based on FY26 DPS of 53.66 pence
Accelerating investment supporting economic growth and resilience in the North West
| ● | Guidance for AMP8 capital investment programme increased to c. £11.5 billion, up from c. £9 billion, representing c. £2.5 billion of incremental investment |
| ● | Incremental investment to support housing and industrial growth in the region, AI-driven industrial development, proactive asset replacement and environmental improvements |
| ● | c. £1.4 billion of incremental investment programme submitted to Ofwat today with the balance of the c.£2.5 billion expected via future Re-openers1 |
| ● | Asset base now expected to grow at 10% CAGR through to 20302, up from prior guidance of 7% |
| ● | Upgraded financial framework: targeting regulatory returns3 of 10-11% in AMP8, an increase of 100 basis points versus prior guidance |
| ● | Funding the equity element of the c. £2.5 billion incremental capex through an £800 million placing, announced separately today, with gearing to remain within target range of 55-65% through AMP8 |
Louise Beardmore, Chief Executive Officer, said:
“One year into our most ambitious investment programme, we have made a strong start delivering
£1.5 billion of capital investment in FY26 and mobilising over 100 supply chain partners to achieve our regulatory commitments on time. We are committed to supporting a stronger, greener, healthier North West, and the plans we are announcing today will do exactly that. We expect it could create a further 4,000 jobs across our supply chain, on top of the 30,000 supported by our existing AMP8 programme, by enhancing our infrastructure and aligning with the Government’s mission for economic growth and decarbonisation.
The proposals we have submitted today for c. £1.4 billion, as part of Ofwat’s 2026 Re-opener process, represent the first phase of our incremental investment programme and focus on providing the water infrastructure for thousands of new homes, powering data centres, enabling clean energy and strengthening the resilience of our network. The balance of the c. £2.5 billion is expected via future Re-openers as we continue to invest further in the North West through the AMP.
With our upgraded financial framework, sector-leading financing performance and strong delivery track record, we are confident in our ability to generate attractive and sustainable returns for shareholders while delivering for our customers, communities and the environment.”
Investment background and 2026 Re-opener
Since the PR24 Final Determination in December 2024, the scale and urgency of infrastructure investment required across the North West has increased significantly. Mandatory housing targets for local authorities in the region have increased, with 66,000 additional homes expected to be built by 2030. The Government’s declaration of data centres as Critical National Infrastructure and the launch of the AI Growth Zone initiative have generated significant new demand for water capacity in Greater Manchester that was not reflected in the Company’s PR24 business plan. HyNet, one of the UK’s largest industrial decarbonisation programmes, has been confirmed as a highest priority programme in the Government’s Major Projects Portfolio.
United Utilities today submitted proposals to Ofwat under the AMP8 Re-opener process, requesting approval for c.£1.4 billion of incremental investment. Plans for a further c.£1.2 billion of investment are expected to be submitted for approval through subsequent submissions in 2027 and 2028 and transitional investment into AMP9, taking total incremental investment to c.£2.5 billion and total AMP8 capital investment to c.£11.5 billion.
The 2026 Re-opener submission comprises investment into the following areas:
| ● | Growth programme (c. £770 million): The programme will deliver new water infrastructure for data centres in East Manchester (c. £200 million), non-potable water supply to the clean energy cluster in Ellesmere Port (c. £220 million), and wastewater treatment capacity upgrades at 34 sites to support 66,000 new homes across the region (c. £350 million). The investment is expected to support over 4,000 new jobs in the supply chain, in addition to the 30,000 jobs already supported by the Company’s existing AMP8 programme. |
| ● | Proactive asset replacement (c. £410 million): The programme will proactively address five asset classes – gravity sewers, water network storage, trickling filters, rapid gravity filters and boreholes. |
| ● | Windermere gated process and strategic water resources (c.£190 million): Investment covering 10 projects across Windermere progressing through Ofwat’s large schemes gated process (c.£110 million) and acceleration of strategic water resource development across the region (c. £80 million). |
Ofwat’s draft decisions on the 2026 submission are expected on 15 August 2026, with final decisions on 15 December 2026.
Upgraded financial framework
The Company is upgrading its financial framework to reflect the accelerated investment programme:
| ● | Targeting regulatory returns of 10-11% in AMP8, an increase of 100bps outperformance compared with prior guidance |
| ● | Capital investment increasing from c.£9 billion to c.£11.5 billion in AMP8 |
| ● | Asset base compound annual growth rate of around 10%, up from around 7% previously |
| ● | Maintain dividend growth in line with CPIH5 |
| ● | Maintain gearing within target range of 55-65%6, supported by a c.£800 million equity raise |
Equity placing
To fund the equity element of the c. £2.5 billion incremental investment programme, United Utilities Group PLC is today separately announcing an equity placing of £800 million. The placing has been structured to ensure gearing remains within the Company’s 55-65% target range through AMP8. The base AMP8 programme of c.£9 billion was already fully funded prior to the Re-opener submission. Further details of the placing, including terms and conditions, are set out in a separate announcement released today.
1Expectation of additional capital investment, to be determined through Ofwat re-openers, comprising Ofwat’s 2026 Cost Change Process, Ofwat’s 2027 Cost Change process, Ofwat’s 2028 Cost Change Process and Transitional Investment
2From the 2024/25 baseline of £15,367 million assuming CPIH inflation of c.3.0% on average in AMP8
3Regulatory return is the return on regulatory equity comprising the base return, outperformance and inflation as per Table 1F of the Ofwat Annual Performance Report.
4Measures of Experience: customer measure of experience, developer measure of experience and business retailer measure of experience
5Target dividend growth in line with CPIH based on FY26 DPS of 53.66 pence
6 RCV gearing calculated as group net debt including loan receivable from joint venture/United Utilities Water Limited’s adjusted RCV (adjusted for actual spend, timing differences and including expected value of AMP8 ex-post adjustment mechanisms).
